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INVESTMENT  OF  FUNDS
of  government  security  for  the  thrifty  poor,  and
particularly  for  those  whose  deposits  in  the  postal
savings  banks  have  reached  the  legal  maximum.
These  bonds  have  been  issued  on  the  first  day  of
each  January  and  July  since  the  postal  savings
system  was  put  into  operation,  and  the  total  issue ­
  up  to  the  close  of  the  fiscal  year  1917  was
$10,000,000.  Of  this  sum  approximately  87  per
cent  was,  on  request,  issued  in  the  registered
form,  which  indicates,  in  the  judgment  of  the
Third  Assistant  Postmaster-General,  “that  they
were  purchased  for  permanent  investment.” 30
On  November  8,  1911,  it  was  reported  in  the
newspapers  that  some  of  these  bonds  had  been
sold  at  92J.  The  report,  which  was  apparently
false, 31  caused  some  anxiety,  and  the  Board  of
Trustees,  who  were  authorized  by  the  Postal
Savings  act  (section  10)  to  invest  postal  savings
funds  in  these  bonds,  promptly  passed  a  resolution ­
  to  purchase  them  at  par  upon  the  application
of  any  holder,  and  to  make  immediate  payment
therefor  in  cash.  Up  to  February  1,  1917,  the
board  had  purchased  $2,045,920  worth  of  these
bonds.
80  Ann.  Rep.,  1916,  p.  11.
31  The  New  York  Times  of  November  18,  1911,  quoted
Postmaster-General  Hitchcock  as  saying  that  “the  only
basis  for  the  rumor  of  an  actual  sale  at  that  price  [92%]
was  an  offer  .  .  .  by  a  New  York  broker  to  purchase  $200
of  the  bonds  below  par,  which  was  not  accepted  by  the
holder."